The Quiet Way Regular People Can Build Real Wealth
What I’ve learned managing millions, and how anyone can start from zero
You want to start investing in the stock market but you have limited financial knowledge and even no money? This beginner’s guide to investing is for you. It removes all the noise and complicated jargon that beginner investors do not need.
I’ve spent over 12 years in the financial industry, including serving on the Board of Directors of a wealth management company where I oversaw millions of dollars across more than 100 individual investment accounts and three mutual funds. In this article, I will share timeless, practical advice that you can adjust to your circumstances. It will lay a solid foundation for you to build wealth over time starting from next month.
Let’s remove all confusion and fear that may have kept you on the sidelines.
Save The Money You Need For Investing
Many people have not invested a single dollar out of fear they might lose money. There is a behavioral finance trick that can help you overcome this initial obstacle. Go over your expenses last month. Is there something you can cut to free up money for your first investment?
For example, I used to buy a Starbucks latte two times a week, which is 8 times a month. At $5 per latte, this makes $40 a month. I also tend to buy a bottle of $10 wine each month. By cutting only these two items, I saved $50. In two months, I got $100.
Why is this $100 different from my other savings? The truth is, it’s not — but there’s a behavioral bias known as mental accounting.
Mental accounting means we don’t treat all our money the same — we often think of it differently depending on where it came from or what we plan to use it for.
Let us use mental accounting to our advantage. Anyway, I was going to lose all of the $100 on lattes and wine, why not put it in the stock market instead and see what happens?
I am sure if you audit your expenses, you will come up with a plan to save $100 or more and free up money to start investing.
If you need some motivating to start saving and investing, read this article on the blog: 5-powerful-reasons-to-start-saving-and-investing-now
Start Small But Keep Going
Can I start investing with just $100?
A popular question is: Can I start investing with just $100?
Yes, you can through something called fractional shares. Fractional shares allow you to purchase only a portion of a share of stock. If the share price is $200, for example, you cannot buy 1 share for $100 but you can buy half of it.
The Snowball Effect of Compounding
I will let you in on a big secret:
It’s not about how much money you start with — it’s about how often you invest and how long you keep going.
Follow this simple rule: choose a sum you are comfortable with to invest periodically — every month or every 3–6 months.
This is a powerful strategy because of what finance experts call compounding. I have to show it with math but I promise you, this article is not about number skills.
How Compounding Works
You invested $100, the stock market grew 10% this year, and you got $110 or $10 more. If the stock market rises 10% again next year, you will not make just $10 extra. You will gain $11 extra because your first year’s $10 return earned 10% as well. You end up with $121 at the end of the second year. I know this $1 sounds insignificant but trust me on it, it is the most important thing in personal finance!
Let’s see another example using https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
- You invest $500 each month for 15 years.
- The investment rises 10% per year but daily compounded.
- You end up with $208,846.11.
This is more than double the $90,000 you contributed ($500/month*12months/year*15years).
The graph below shows how your wealth will grow with time.
Imagine it like rolling a small snowball down a snowy hill. If you have a decent hill and enough snow on it, the snowball will get bigger and bigger with time.
Compounding works the same way:
The more time you give it, the more your money can grow on its own (if stock market returns are positive, of course).
Index Funds Only: Stay Away From Individual Stocks
You started with nothing, saved up your first investment, and made a plan to keep going periodically. It’s time to put your money into the market.
It will be incredibly tempting to chase after hot stock picks, crypto, or tech buzz. Resist it!
We are laying the foundation of your future wealth. Foundations need to be solid. Stock-picking comes at a much later stage after you accumulate some wealth and financial knowledge.
Stick to low-cost index funds.
This is all you need. People often ask me — “Mariya, what should I invest in these days?” I always tell them “An index fund.” I am sure I will say the same thing in 10 years.
It is not just me. Warren Buffett, one of the most successful investors of all time, is a well known advocate of index funds. To learn more about Warren Buffett’s style, check this article on the blog: investing-101-no-madness-no-math
What is an index fund?
This article is not sponsored, there are no affiliate links. If you are a new investor, the best place to start is with Vanguard’s ETFs — passive index funds.
An index fund is an investment that aims to mimic the performance of a specific basket of stocks, called an index — like the S&P 500 or the Dow Jones in the U.S.
Only two things to remember:
- A passive index fund always tracks a market index — you cannot buy the market index directly, no one can, but you can buy the index fund that tracks it very closely at a very low cost.
- You want the ETFs — there are exchange-traded index funds (ETFs) and mutual index funds. As a new and small investor, you prefer ETFs, they are often tax-efficient and have low minimum investment requirements.
Which passive ETF to buy?
This is up to you; I am not authorized to provide investment advice. However, think of it in terms of economic growth. A passive ETF follows many public companies within a specific country, region, or sector. You are basically betting that the particular country, region, or sector will grow over time.
A great place to start is Vanguard’s list of ETFs: https://investor.vanguard.com/investment-products/list/etfs?filters=open. In the filters, go to Asset Class, select Stocks, and explore the table row by row. You have the name, symbol, and additional information including what the fund tracks and its past performance.
Past performance is not indicative of future results. If the fund had a 1-year return of 14%, it does not mean it will return 14% this year as well.
I always check what it returns on average annually since inception. It is a good indicator for you as well. This article is about investing consistently and long-term. Short-term volatility and fluctuations are less important than long-term growth tendency.
Here is how the VIG, Dividend Appreciation ETF looks in the table as of July 2nd, 2025. It is cost-effective with a 0.05% expense ratio. It has an average annual return of 9.8% since its inception in 2006.
If I click on the ETF name, I go to its page and learn that it tracks the performance of the S&P U.S. Dividend Growers Index. This is a large-cap equity market index, emphasizing stocks with a record of growing their dividends year over year.
In a similar way, you can go row by row until you pick the ETF you want.
How many passive ETFs to buy
According to Warren Buffett, you can buy just the S&P 500 ETF your whole life and it is good enough. This is not a recommendation but an illustration.
One ETF can give you exposure to hundreds of companies.
- S&P 500 to 500
- The VIG index we discussed above to 337
You can add as many ETFs as you like to your overall portfolio or stick to one or two.
How long should I keep the ETF shares?
Let us ask Warren Buffett again. He will say — forever.
Hold them for at least 5 years, ideally more than 10.
Unlike stock picking, investing in passive index ETFs is a buy-and-hold strategy, set-and-forget. The idea is to accumulate wealth without the stress of day trading.
When Will I Become Rich?
Yes, small and regular investments into low-cost passive index ETFs build wealth…but gradually and over a long period. You are likely to see life-changing results after 10 years. The exact timing, however, depends on how the economy performs along the way.
There will be periods in which your wealth will increase and other periods in which it will decrease. But the volatility, or how much it goes up and down, will be much lower than that of a portfolio of individual stocks which may stay low forever if you picked the wrong stocks.
The only secret of this strategy is consistency.
It is because it takes discipline over a long period, that many people give up on it and start chasing get-rich-fast alternatives.
Your Path To Financial Independence
You have no money, no investments, and no financial knowledge. But you are the kind of person who can set a goal, make a plan, and stick to it long-term?
Then start investing already next month to attain financial independence over time. This article is simple but covers all you need to grow your money without stress, stock-picking, or daily market-watching.
Investing is not reserved for the rich. Small but regular contributions in passive ETFs quietly build wealth. Anyone can do it.
Disclaimer: The information provided in this article is for educational and informational purposes only. It is not intended as financial or investment advice and should not be construed as such. Always consult with a licensed financial advisor or investment professional before making any investment decisions. Past performance is not indicative of future results. Investing involves risk, including the risk of loss.